Nissan, NEC to Invest $1.1 Billion on Electric Car Batteries

Besides a new lithium ion battery plant in Japan, the Nissan, NEC joint venture is also considering setting up factories in the United States and Europe in a bid to tap low-interest loans offered by local governments.

Published: 29-Dec-2008

TOKYO -- Japan's Nissan Motor Co (7201.T) and NEC Corp (6701.T) will invest at least $1.1 billion to make lithium-ion batteries for about 200,000 electric and hybrid cars annually in 2011 or later, the Nikkei business daily said on Monday.

Nissan, NEC and NEC Tokin Corp (6759.T) have a joint venture to start manufacturing lithium-ion batteries from next year. It will have an initial capacity to supply 13,000 units a year, which will be first be used in forklifts.

The companies have said they plan to ramp up annual capacity gradually to supply 65,000 units in 2011 for use in Nissan's in-house hybrid car and electric vehicles due in 2010.

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